1. What are the procedures when buying a property in Cyprus?
2. How does the cost of living in Cyprus compare to UK?
3. What are other extra costs involved when buying a property in Cyprus?
4. What are the ongoing expenses to keep a property in Cyprus?
5. Can a British national work in Cyprus?
6. How the medical care system in Cyprus does compares to UK?
7. Would British nationals have to pay tax on their pensions?
8. Is Inheritance Tax different in Cyprus?
9. Are there any tax advantages for foreigners in Cyprus?
10. What are the driving regulations in Cyprus?
11. What types of Title Deeds exist when buying a property in Cyprus?
12. Are there any restrictions on buying a property for foreign nationals in Cyprus?
13. Will I be able to take the proceeds of sale on property out of Cyprus?
14. How much is the property insurance on average?
15. Is it possible to arrange the mortgage to buy a property in Cyprus?
16. What are the standards of education in Cyprus?
17. How safe is it to buy a property in Northern Cyprus?
18. Is there any advantage of buying a property in Cyprus directly from the developer instead of going through an estate agent?
19. What would you suggest to buy to let in Cyprus - a villa or apartment?
20. What are the up and coming areas in Cyprus to buy a property to get maximum capital growth?
21. Do off plan properties in Cyprus represent better value for money?
The procedures of buying property in Cyprus have a lot of similarities to UK, as the local laws are based on the British legal system. However there are many differences as well.
There are freehold and leasehold type of deeds in Cyprus. We do not offer leasehold properties. Always use a solicitor and a reputable construction company when buying a property abroad and in Cyrus in particular. There were some cases in the recent past when the buyers parted with their deposits and have never seen the developer or a property since. We work with reputable developers only, with a sound proven records of construction, however if you have any reservations about the construction company, bank guarantees can be arranged at extra costs at the local banks (the fees are normally in the region of 1.5-2% of the agreed sales price). This particularly applies to small developer, who may be less financially stable.
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The cost of living in Cyprus is relatively low compared to UK and many European countries. You would not have to compromise on standard and quality you were used to in UK, but bear in mind that locally produced goods and brands are cheaper than foreign brands you might be used to in UK. The quality however is superb, especially locally grown fruits and vegetables, meat and fish which can be bought through the supermarkets or local markets. You can cut your food bill by at least a third compared to UK.
The ongoing bills vary upon the size of the property and the family. On average, the annual charges for a family with 2 children in a three bedroom house are around 12 CYP for gas, CYP 110 for water, CYP 360 for electricity.
Petrol in Cyprus is about 48cents a litre, an evening meal in a restaurant including drinks ranges from £10 per person.
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You would be expected to pay the following fees associated with the property purchase in Cyprus:
1. Stamp Duty is payable not later than 30 days from the date of signing the contract. For properties up to and including CY Pounds 100,000 the stamp duty of CYP1.50 is paid, for properties above that amount CYP 2.00 per CYP 1,000 is paid. For example, CYP100, 000 properties would incur CYP 1,500 Stamp Duty.
2. Legal Fees vary, but CYP 500 would be a good general guide.
3. Transfer Tax are payable when the Title Deeds are transferred. On transfer of the property to the name of the new owner at the district Land Registry the following taxes will be calculated based on the market value of the property at the time of purchase:
3% - is payable on properties under and inclusive CYP 50,000
5% - is payable on properties from CYP 50,001 - CYP 100,000
8% - is payable on properties from CYP 100,000
Ask your solicitor about the costs in advance, as the legislation is subject to change.
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The annual immovable property in Cyprus tax levied by the government is in the region of CYP 60-120 per annum. Also the local municipal authorities put annual property tax of CYP 20-30 per annum. Some municipalities might also require payment of sewage tax of CYP 20-40. Household rubbish removals are done by the local authorities and vary from area to area; however CYP 50 per annum would be a good benchmark.
The management fee of a property located on a complex varies from development to development, but could be estimated at around CYP 150-300 per annum.
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You would require to apply for a work permit. The rules will gradually change as Cyprus is now a full member of European Union.
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You can expect a high standard of medical care in Cyprus, as the majority of doctors were educated in UK or USA. Private medical insurance can be obtained from CYP 130 per annum. A visit to a doctor would cost you around CYP 10. With Cyprus becoming a full member of the EU, changes are expected. The healthcare is expected to be available to all EU residents in Cyprus, however you would need to fill the E111 form from the post office, before you travel which explains exactly what it covers. British nationals of retirement age are entitled to free healthcare due to the agreements between two governments. Make enquiries at your local Post Office before you travel to Cyprus.
Despite the fact that there is a National Health Service in Cyprus, the medical treatment costs are low. Different medical insurance schemes are offered to meet all requirements.
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According to the local tax rules you would have to declare your income from pension. Individual non-Cypriot residents are taxed on a flat basis of 5% per annum on pension and investment income brought into Cyprus. In some circumstances, exemptions totalling up to CYP 4,000 per individual or CYP 8,000 per married couple might apply.
Further details are available from the UK Benefits Agency:
The Benefits Agency
Customer Service Unit
Department of Social Security
Pensions & Overseas Benefits Directorate
Room TC109
Newcastle upon Tyne
NE98 1BA
Tel: 08459 154811
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There is no such tax in Cyprus.
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Only recently retired people who come to live to Cyprus permanently were allowed to bring their belongings tax free (personal and household goods as well as furniture duty free), providing that they are for personal use and have been in use for at least one year. There are additional concessions for bringing duty free cars for retired people as well.
Double taxation treaty between Cyprus and UK are in place.
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Driving in Cyprus is like driving in UK, on the same side of the road. The roads are well signposted (all signs are in English) and maintained, apart from the lack of heavy traffic you would think you were driving in the UK.
You would require to have a valid International Driving Licence or their National Driving Licence; provided it is valid for the class of vehicle you want to drive. To obtain a local driving licence you would require taking a local driving test and paying a one off fee of CYP 35.
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Like in UK the property Title Deeds in Cyprus are freehold and leasehold. We only show freehold properties during the viewing appointments.
The title deeds in Cyprus are issued after the completion of the project. In the case of houses this process may take up to 18 months. For an apartment in a project of 10 to 60 apartments this process can take up to 3 years. In Paphos area you might be waiting for your property Title Deeds for over 4 years due to the big backlog of properties bought by foreign nationals in the past few years and archaic ways of dealing with the applications by the local authorities.
The new owner can sell their property in Cyprus at any time before that. From the minute the contract of sale is registered at the land registry department, the property is officially becomes registered in the name owner's name and they can sell their Cyprus property when they need to.
Transfer of ownership from seller to buyer is accomplished by a simple procedure at the land registry office. The contract of sale must be in writing, and should be registered at the District Land Registry Office within 60 days from the contract date. When issued, the title deed will be registered in the name of the buyer and will be recorded in the confidential government archives.
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Foreign nationals require a permission to buy a property in Cyprus from the Council of Ministers by application in writing after signing the purchase agreement. It is normally a formality to all bona fide prospective buyers. The situation will be reviewed in the near future due to Cyprus' accession to EU. Your solicitor would be able to give you more up to date advice on this matter.
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The full purchase price can be remitted straight away. As the law stands at the moment, you would have to pay 20% on the profit, the first CYP 10,000 of profit per person are tax exempt. The subsequent CYP 50,000 plus any interest earned during the year can be remitted out of the Cyprus each year on the remaining profits. Your solicitor would be able to advise you on the tax implication or recommend a good accountant to deal with your tax liabilities as the rules and rates change from time to time.
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As a general guidance property insurance is charged at 1.65% of the current property value and contents are calculated at 2% of their total value.
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It is possible to arrange a local mortgage to buy a property in Cyprus. The standard mortgage term is 10- 15 years. The rates vary from bank to bank. As a general rule 70% of the sale value based on valuation can be arranged through a local bank based on the property purchase in Cyprus as a security. Interest rates are slightly higher than in the UK, however the accession to EU should bring the borrowing costs down.
Please note, that it is not possible to arrange a local mortgage when buying a property in Northern Cyprus. It can only be arranged by equity release on your existing property in UK. We would be happy to provide you the contact details of the financial advisors.
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Education in Cyprus offers a good mixture of public and private schools. Education in public schools is in Greek, whilst private schools cater for the needs of the foreign nationals who chose to live in Cyprus: French, Russian, Italian and English, of course.
Here is a list of the schools that you might consider contacting for a brochure or more information:
The American Academy Nicosia
The American Academy Nicosia is a school of Pre-Primary, Primary and Secondary Education, registered at the Ministry of Education of the Government of the Republic of Cyprus. The graduates of the school are accepted in almost all the Universities and Colleges of Europe and America. Moreover, they can sit for the entry examinations of Greek and Cyprus Universities.
Telephone: 00357-2462886
Grammar School
The Grammar School (Nicosia and Limassol) is a co-educational secondary Gymnasium and Lyceum school, open to students of all nationalities.
Telephone: 00357-22621744, 22621658
Primary School
Nursery and Primary School located in Nicosia
University of Cyprus
Telephone: 00357-22-892000
The Private English Junior School
Telephone: 00357-25352141, 25352758
International School of Paphos
Telephone: 00357-62322236
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In the past few years the interest in buying a property in Northern Cyprus has been growing rapidly. The property prices in Northern Cyprus are significantly lower than in the South; however the buyers should be aware of different Title Deeds that bear different potential risks for the investors or buyers. We always advise to buy properties with internationally recognised Title Deeds (clear Title Deeds) in Northern Cyprus that were not involved on the conflict between the North and the South. The choice is more limited as there are not so many properties for sale in Northern Cyprus on offer with such Title Deeds. Contact us, if you would like to discuss you options.
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It is a myth that buying directly from the developer in Cyprus would save the buyer a commission. A local estate agent or UK property consultant would be able to give you impartial advice on the local property market and give you an overview of available developments in the area in which you are interested.
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There is no right answer to this question. It is a question of the property location (prime location luxury villas are always in demand) and the financial restrictions. Both villas and apartments in Cyprus are easily let providing that they are in a good location (close to amenities).
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In our opinion the up and coming area in Cyprus is Larnaca. The property prices in Larnaca are currently cheaper than in Paphos and are expected to grow more than in other areas due to the plans to construct several golf courses in the area and government investments in the local infrastructure.
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As a general rule buying off plan in Cyprus represents a better investment, as the value of the property grows during the period of construction. However, in mature property markets and areas such capital growth should be not as significant as in up and coming areas.
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IMPORTANT
The information provided above should be used as a guideline only, and can vary with regard to individual circumstances. For further information, or advice contact us via e-mail.
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